06.03.2009 - Using interest-based indexes as benchmarks for Islamic financing

From Imranadeel: I am not sure about whether this practice is still there or not, but till about three years ago, Islamic Banks would finance something (in any mode) but benchmark it against KIBOR (in Pakistan, at least).
When we asked some Islamic Finance scholars about why they were benchmarking their rates with KIBOR, they responded that if a seller of a soft drink keeps the price of his tin can equal to those of beer, then thatís not wrong, and thus this practice was ok..... Full Article: Source